Understanding The Basics Of Estate Planning In BC: A Guide For Beginners
People spend all their lives providing for their families and making them happy. Estate planning helps them care for their loved ones even when they are no longer with them.
Effective estate planning involves preparing the right legal documents and choosing the right people to distribute your wealth among your loved ones. It helps you ensure your family’s future and well-being after your demise.
If you live in British Columbia (BC), work with experienced estate lawyers in Surrey, Vancouver, Richmond, or the region you live in. Trusted local lawyers will help you draft documents, review them, and register them with the right authorities whenever needed.
You need not be intimidated if you have never made an estate plan. There is no age limit to prepare a will, power of attorney, representation agreement, or any other legal document related to estate planning.
Here is a quick estate planning guide for beginners to understand the basics before you approach your lawyer.
Key Components Of An Estate Plan In BC
Let us start by discussing some of the most important components of an estate plan. You may or may not need more than one document depending on your circumstances:
Will
This is arguably the most popular and common component of an estate will. The legal document allows you to distribute your wealth among your loved ones, also called beneficiaries.
Your will should also nominate an executor to manage wealth distribution on your behalf. They will also execute all other actions mentioned in the document, such as paying taxes, repaying debts, appointing business heads (if applicable), and more.
British Columbia requires you to prepare a tangible will that is duly signed. You will also need two witnesses apart from the beneficiaries to validate your will. The absence of a will sends wealth distribution matters to the court. After your demise, the BC court may or may not manage your wealth according to your wishes.
Executor
An executor is the person who manages your estate on your behalf after your demise. They will ensure that your estate plan is carried out according to your preferences.
Executors are responsible for performing various actions, such as paying your debts, filing your taxes, appointing your business successor, distributing your wealth, participating in matters that may cause conflict related to your estate plan, and much more.
An executor shoulders multiple responsibilities and should be a person you trust unconditionally. Take your time while appointing your estate plan’s executor.
Power of Attorney (POA)
A POA is a document that lets you nominate a person (called an attorney) to handle your business, financial, or administrative operations in your absence. Your attorney can take over and make decisions on your behalf if you are physically absent or mentally incapable.
There are two major POA types you can prepare in British Columbia: general and enduring. A general POA gives short-term powers to your attorney to handle your operations on your behalf. An enduring POA gives an attorney long-term powers once you lose mental capacity.
Representation Agreement
A representation agreement helps you look after your physical and mental health if you become incapable in the future. Just like you appoint an attorney in a POA, you appoint a trusted representative who makes healthcare and personal care decisions for you.
A representation agreement in BC is considered a legal alternative to a “living will.” You will need this document if you want a specific person to look after your medical needs.
Advance Directive
This is a written instruction containing your healthcare preferences if you are not able to communicate properly. While it does not involve appointing anyone to look after you, the document guides any caregiver handling your medical needs.
Digital Assets
In 2025, digital assets form a sizeable portion of a person’s wealth. These assets include bank accounts, email accounts, social media accounts, cloud storage, cryptocurrencies, digital wallets, online businesses, and more. Estate planning for beginners and informed individuals in 2025 should involve these assets and their management.
Which Mistakes Should You Avoid While Making An Estate Plan In BC?
Now that we have covered the basics of estate planning and its key components, let us have a look at the mistakes you should avoid while preparing your estate plan in BC:
- Procrastinating will preparation and dying without a will
- Failing to update your estate plan according to major live events
- Choosing the wrong executor or attorney
- Overlooking tax laws and implications
- Failing to plan for physical or mental incapacity
- Leaving digital assets out of your estate plan
How Should You Get Started With Your Estate Plan In BC?
Here are the basic stages involved in preparing an estate plan in BC:
Hire A Local Will And Estate Lawyer
Start by hiring a local estate planning lawyer you trust. Look for the most reliable professionals with proven track records.
List Your Assets and Liabilities
Make an extensive list of all the assets you own and the liabilities you owe. This will help you calculate the wealth left to distribute among your beneficiaries.
Choose Your Beneficiaries
Select the beneficiaries among your family members, friends, or anyone you want to give a portion of your wealth.
Appoint A Trusted Representative
Choose a trusted person to act as the executor, attorney, or representative, depending on the document(s) you prepare. They will execute your wishes and bring your estate plan to fruition.
Store Your Documents
Once drafted with the help of your lawyer, you should store your documents safely. Keep the documents and their contents confidential at all times.
Review Your Estate Plan
Review your estate plan regularly to keep it updated and make necessary changes whenever needed.
The Final Word
Proper estate planning helps you provide for your loved ones when you are no longer with them. Consult a trusted will and estate lawyer in BC to prepare an extensive and precise estate plan according to your wishes. A well-made estate plan prevents conflicts, reduces doubts, and relieves you from the anxiety caused by uncertainties.